ASEAN is on track to become the world’s fourth-largest economy by 2030, rising from its current position as the fifth-largest. According to ASEAN Economic Community (AEC) Deputy Secretary-General Satvinder Singh, the region’s GDP surged by 51%, reaching $3.8 trillion in 2023 compared to $2.5 trillion in 2015. This impressive growth underscores ASEAN’s robust economic trajectory and its commitment to establishing itself as a key player in the global economy.
Speaking at the “Vision 2024: Age of ASEAN” conference, co-hosted by Malaysia’s Ministry of Investment, Trade, and Industry (MITI), the ASEAN Business Advisory Council, and the Boston Consulting Group, Singh highlighted the region’s thriving trade activities. Regional trade reached $3.5 trillion in 2023, up from $2.3 trillion in 2015, significantly boosting per capita income across member states.
Singh noted that ASEAN’s trade, nearly equivalent to its GDP, is primarily driven by intra-Asian trade, which now approaches $800 trillion. This level of trade integration, alongside substantial foreign direct investments (FDI), has made ASEAN the largest FDI recipient in the global south, with investments totaling approximately $230 billion.
Looking forward, ASEAN is expected to play a pivotal role in the global supply chain, especially in sectors like semiconductors, agriculture, data equipment, minerals, and metals. The region’s attractiveness is further enhanced by its rapid technological transformation, with frontier technologies such as 5G, artificial intelligence, and the Internet of Things projected to generate an additional $8 trillion in economic value.
However, Singh also pointed out challenges, such as the aging workforce and the risk of skills mismatches. To sustain its growth, ASEAN must focus on retraining young workers in technology and innovation, while ensuring older workers remain productive through enhanced skills development.
As ASEAN continues on this upward trajectory, its economic integration and technological advancements are expected to drive the region’s growth, positioning it as a dominant global economic power by the end of the decade.
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